Question

I suppose you deposit 600 in bank account with the simple interest rate of 2.5% you want to keep your deposit in the bank long enough to earn earn at least $120 in interest how long should you keep your deposit in the bank

Answer 1

The time period for deposit in bank is 8 years .

Explanation:

Given as :

The principal amount deposited in account = p = $600

The rate of interest = r = 2.5% simple interest

The Interest earn after T years = s.i = $120.

The time period for deposit in bank = T years

Now, From Simple Interest method

Simple Interest =
`(\textrm principal* \textrm rate* \textrm time)/(100)`

Or, s.i =
`(\textrm p* \textrm r* \textrm T)/(100)`

Or, $120 =
`(\textrm 600* \textrm 2.5* \textrm T)/(100)`

Or, 120 =
`(1500* T)/(100)`

Or, $120 = $15 × T

∴ T =
`(120)/(15)`

i.e T = 8 years

So, The time period for deposit in bank = T = 8 years

Hence,The time period for deposit in bank is 8 years . Answer